The Bengaluru Bench of the National Company Law Tribunal (NCLT) has issued a directive to freeze the assets sold during the insolvency proceedings of Think and Learn Private Limited (TLPL), the parent company of BYJU’s. This action follows claims that assets valued at approximately Rs 150 crore were auctioned for merely Rs 16 crore.

The tribunal has instructed the Resolution Professional (RP), Shailendra Ajmera of EY, and Comprint Tech Solutions, the successful bidder, to preserve all auctioned assets in their current condition until the next hearing scheduled for September 21. Comprint has been asked to provide a detailed inventory of the assets acquired within a week, which must include their present locations and physical photographs.

This interim order stemmed from numerous parties disputing the auction process, particularly the method of asset sale and concerns regarding the actual ownership of the goods sold. The tribunal noted that the ownership status of several auctioned items remains uncertain, raising fears that assets belonging to third parties could have been inadvertently sold. These issues highlight the complexities and ongoing disputes surrounding the insolvency proceedings of TLPL.

Response from the Resolution Professional

In response to the allegations, the Resolution Professional has defended the auction process, asserting that the assets sold were legally owned by TLPL. The RP contended that the sale had undergone scrutiny and received approval from the Committee of Creditors (CoC). According to the RP, those contesting the auction have failed to demonstrate any legal claim over the disputed inventory.

The RP further insisted that the auctioned assets constituted part of the corporate debtor’s estate, and thus were legitimately handled as part of the ongoing insolvency process. This defence is being presented amidst claims from other stakeholders that the auction was rushed and that critical assets belonging to other entities within Byju’s could have been included in the sale.

Concerns about the auction’s speed have been raised, with allegations suggesting that important assets essential for the resolution process of Byju’s K3 Education Private Limited were inadequately accounted for. Furthermore, it was claimed that missing inventory records dating back to December 2024 would have provided clarity regarding the legal ownership of these assets.

Legal Disputes and Allegations

The ramifications of this case are significant, as it raises questions beyond the auction price. The disparity between the estimated value of Rs 150 crore and the sale price of about Rs 16 crore is prompting scrutiny regarding asset valuation and whether there was adequate opportunity for competitive bidding within the compressed timeline.

At this stage, the NCLT has refrained from making a definitive ruling on the ownership claims or the auction’s validity. Instead, the tribunal’s orders ensure that Comprint cannot dispose of, alter, or engage with the purchased assets until a thorough examination of the case is conducted.

This situation adds a new layer to the ongoing complexities of the insolvency proceedings involving Byju’s and TLPL, highlighting the intricate issues of asset ownership and valuation during financial resolutions.

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